New York State’s Act 5775, which took effect Jan. 1, restricts public adjusters from receiving a referral fee or having an ownership interest in a restoration or repair company working on the claim unless such compensation to the public adjuster is explicitly stated in the contract or other written disclosure form.
The newly enacted law also requires that the aggregate of all fees shall not exceed the maximum compensation or fee provided for in the agreement. In New York, the total compensation to the public adjuster cannot exceed 12.5 percent of the recovery resulting from services rendered by the adjuster.
The law also requires public adjusters to disclose any family ties to contractors working on the claim. The law codifies New York regulators’ existing position based upon interpretation of previous law, according to the American Association of Public Insurance Adjusters.
Topics New York
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